Question

Tobias Eaden started a sole proprietorship named Sky High Ads. A customer’s message can be displayed on an airplane banner across the city. The following are Sky High Ad’s business activities during the month of November 2017:

Nov	1	Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads.
	3	Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance.
	7	Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business.
	9	Purchased $5,000 of supplies on credit.
	13	Provided services to a customer for a marriage proposal of $16,000 on credit.
	17	Paid $3,000 wages to a pilot.
	21	Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15.
	23	Paid for half of the account payable from the November 9 transaction.
	27	Purchased $20,000 of new aircraft equipment by paying $15,000 cash and trading in old aircraft equipment with a recorded cost of $5,000.
	30	Withdrew $3,200 cash from the business for personal use.

Required:
1. Not available in Connect.

2. Not available in Connect.

3. Prepare General Journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)  

Journal entry worksheet 123 4 5 678 910 Record the investment of $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads. Note: Enter debits before credits. Date Account Description Debit Credit Nov 01 Record entry Clear entry View general journ

Answer 1

Date	Account Description	Debit	Credit
01 Nov	Aircraft A/c	50,000
	Investment A/c	2,00,000
	To Cash / Bank A/c		2,50,000
03 Nov	Land A/c	4,00,000
	Office Building A/c	1,00,000
	To Cash / Bank A/c		1,25,000
	To Long term notes Payable		3,75,000
07 Nov	Airplane A/c	2,00,000
	To , Capital A/c		2,00,000
09 Nov	Purchases A/c	5,000
	To Creditors / Payable A/c		5,000
13 Nov	Receivables / Debtors A/c	16,000
	To Sales / Revenue A/c		16,000
17 Nov	Wages A/c	3,000
	To Cash / Bank A/c		3,000
21 Nov	Deposit A/c	250
	To Payable A/c		250
23 Nov	Payable / Creditors A/c	4,500
	To Cash / Bank A/c		4,500
27 Nov	Depreciation A/c	45,000
	Aircraft A/c	20,000
	To Cash / Bank A/c		15,000
	To Sale of an asset (old Aircraft) A/c		50,000
30 Nov	Capital A/c	3,200
	To Cash / Bank A/c		3,200